Companies - Financial Statements
·
Companies divide capital into shares. Swe issue shares to get more capital
·
It is important that authorised share capital be stipulated in advance of the initial
public ofering (IPO) because it will give an idea to a potential shareholder of
the % stake he can afford in the Company
.
Notes and General ledger * DATES # What
happens first , comes first .
Ordinary Share Capital : (Note 7) mot specifies how
many shares the
company is
allowed to sell Company can't exceed
according to McI
.
>
Share .
This number
-
.
JI
Authorised amnt of
amnt
of 100000 ordinary shares ⑳000 shares
Not a
.
shares
Randalue .
Issued >
-
what I'm selling
200 000
Ordinary shares issued beg of yo OI Jan 2020 ⑳000 opening
Balance
(80 000
20 000
Ordinary shares
purchased at R4 each on 1 Feb 2020
Rand
Ordinary SharesissuedonAng2020
-000
at R, 5cat 325000 Value
, 045000 from
E 80000 + 325000
Trial
Balance.
800000
-
A
company will
only issue a repurchased' or 'buy back'
certain amount of shares. This of shares is the business 2
number can't exceed the authorised buying back the shares from
shares amount as that is the shareholders , to control
, gain more
amount of shares the company. of the business. * Amount is in Brackets
only in
>
- to
-Ordinary shares at the end of yr : get amnt :
200, 000 + 20000 + 50000 num of shares X share price
=
270 000 20000 X4 =
80, 000
! DATES ! NB *
Buy back of shares is at the
average
* See what transaction comes share price * of share up until
price
-
first to determine method : that date .
L
If
① Opening balance (Rand value) - share amount
opening repurchasing happened
800 000 : 200 000 R4 before
issuing of shares
=
OR
② Opening share balance I
200 000 = 50 000 =
R4
share amount that was issued
J If
after the
repurchasing happened
issuing of
shares .
, ·
To calculate the average share price the end of year :
Rand value of end of yr shares : amount of total shares issued for the year .
balance I total af shares issued.
..
closing amount
1045000 = 270000 =
R3 , 87
"If the closes down on this date , how much will each shareholder receive for
company
·
"
each share that he owns ?
from Balance sheet.
>
-
Shareholders equity: total amnt of shares issued
Cordinaryshare capital (closing bal of note) + retained income) =
total amnt of shares issued
29 .
.
Retained Income 200000 (740, 000 + 200000) = 500 000
R1 , 88
Ordinary share Capital
=
740000
,
total amnt of shares issued 500, 000
(OIE)
reducing
share Equity
Ordinary Share Capital
-
+
I
repurchasing
80000an o Balance b 800.a
Feb
Back Bank 85
Buying 202001 issuing
shares
of shares .
old 1045000 Getting
282831 Balance capital
1125000 1125000
28 o
Balance Did 1045000
* Do not put authorised
shares in general ledger
·
Companies divide capital into shares. Swe issue shares to get more capital
·
It is important that authorised share capital be stipulated in advance of the initial
public ofering (IPO) because it will give an idea to a potential shareholder of
the % stake he can afford in the Company
.
Notes and General ledger * DATES # What
happens first , comes first .
Ordinary Share Capital : (Note 7) mot specifies how
many shares the
company is
allowed to sell Company can't exceed
according to McI
.
>
Share .
This number
-
.
JI
Authorised amnt of
amnt
of 100000 ordinary shares ⑳000 shares
Not a
.
shares
Randalue .
Issued >
-
what I'm selling
200 000
Ordinary shares issued beg of yo OI Jan 2020 ⑳000 opening
Balance
(80 000
20 000
Ordinary shares
purchased at R4 each on 1 Feb 2020
Rand
Ordinary SharesissuedonAng2020
-000
at R, 5cat 325000 Value
, 045000 from
E 80000 + 325000
Trial
Balance.
800000
-
A
company will
only issue a repurchased' or 'buy back'
certain amount of shares. This of shares is the business 2
number can't exceed the authorised buying back the shares from
shares amount as that is the shareholders , to control
, gain more
amount of shares the company. of the business. * Amount is in Brackets
only in
>
- to
-Ordinary shares at the end of yr : get amnt :
200, 000 + 20000 + 50000 num of shares X share price
=
270 000 20000 X4 =
80, 000
! DATES ! NB *
Buy back of shares is at the
average
* See what transaction comes share price * of share up until
price
-
first to determine method : that date .
L
If
① Opening balance (Rand value) - share amount
opening repurchasing happened
800 000 : 200 000 R4 before
issuing of shares
=
OR
② Opening share balance I
200 000 = 50 000 =
R4
share amount that was issued
J If
after the
repurchasing happened
issuing of
shares .
, ·
To calculate the average share price the end of year :
Rand value of end of yr shares : amount of total shares issued for the year .
balance I total af shares issued.
..
closing amount
1045000 = 270000 =
R3 , 87
"If the closes down on this date , how much will each shareholder receive for
company
·
"
each share that he owns ?
from Balance sheet.
>
-
Shareholders equity: total amnt of shares issued
Cordinaryshare capital (closing bal of note) + retained income) =
total amnt of shares issued
29 .
.
Retained Income 200000 (740, 000 + 200000) = 500 000
R1 , 88
Ordinary share Capital
=
740000
,
total amnt of shares issued 500, 000
(OIE)
reducing
share Equity
Ordinary Share Capital
-
+
I
repurchasing
80000an o Balance b 800.a
Feb
Back Bank 85
Buying 202001 issuing
shares
of shares .
old 1045000 Getting
282831 Balance capital
1125000 1125000
28 o
Balance Did 1045000
* Do not put authorised
shares in general ledger
